India and South Korea announced plans on Monday to double their trade to $50 billion by 2030. They aim to expand cooperation in energy, critical minerals, shipbuilding, semiconductors, and steel as part of this initiative.
The two countries also agreed to resume and enhance negotiations for their 2010 trade agreement, with India seeking a more balanced trade relationship and South Korea aiming for greater market access to the world’s fastest-growing major economy.
South Korean President Lee Jae Myung is in India for a three-day visit, marking his first state visit to the country in eight years. Accompanied by around 200 businesspeople, he met with Indian Prime Minister Narendra Modi.
Modi emphasized the significance of Lee’s visit and the decisions made to boost trade from $27 billion currently to $50 billion by 2030. He highlighted the strong cultural ties between the two countries that date back centuries.
Indian Trade Minister Piyush Goyal discussed resuming and revamping their trade pact with his South Korean counterpart, Yeo Han-koo, focusing on industry, green energy, and digital trade cooperation.
Lee suggested at a business forum that India’s AI capabilities and South Korea’s advanced manufacturing could create significant synergies, while shipbuilding cooperation would open new industrial ties.
South Korean companies like Samsung Electronics, Hyundai Motor, and LG Group were represented at the forum. Separately, POSCO Holdings announced plans to build an integrated steel plant in Odisha with India’s JSW, with a projected investment of $1.09 billion by the end of 2031.
A recent seminar noted that despite strong political ties, commercial ties between the two nations have not kept pace, with South Korea having a trade surplus of $12.8 billion last year, according to Korea International Trade Association data.